UNLEASHING THE POWER OF ALL OF US
THE 5 DISCIPLINES OF
INCLUSIVELEADERS
Diversity and inclusion have been championed in
businesses across the globe for years now. Yet,
the stark reality is those from underrepresented
groups, and in particular, racial and ethnic
minorities in many countries, are still not treated
equally and do not feel they have a voice.
And now in the wake of recent events in the
United States that have highlighted the ever
present mistreatment of Blacks, which has had
ripple effects around the world, many leaders
are finally waking up to the fact that they have a
role in speaking to inequities rooted in systemic
racism. Other underrepresented groups are also
facing their own forms of exclusion whether
it’s due to gender, sexual orientation, gender
identity and expression, disability, age, and so on.
While the nature of each exclusion has its own
particularities, patterns, and histories, the bottom
line is that many people, just by the nature of who
they are, are living without the sense of physical
and psychological safety that should be a given.
The 5 Disciplines of Inclusive Leaders 02
Many employers in all sectors have a genuine concern for
ensuring their talent feels valued, respected, and safe. They
seek to have equitable organizations where disparities at any
level including in access, opportunity, support, and reward don’t
exist. They want to deliver on their promise of equality that no
one will be favored or disfavored on the basis of who they are.
They find themselves wondering:
• How to attract the best talent from talent pools that have
never before been tapped?
• How to ensure that all talent including women, people of
different races, and ethnicities, socioeconomic status, and
those with different physical and cognitive abilities, sexual
orientations, or personalities can rise to the fullness of their
potential and into the highest levels of leadership?
• How to ensure the increased complexity of more diverse
workforces does not lead to destructive conflict but rather
to better ways of managing it?
• How to optimize the diversity for greater innovation and
organizational growth?
• How to tap an organization’s diversity to reach increasingly
diverse, previously unreached consumers and markets and
delight them in a way that is meaningful to them?
All these questions seek answers even as we are in the midst of
a global pandemic upending nearly every dimension of life and
work, all piling on unprecedented challenges for how to best
lead. These tumultuous times are also upturning the traditional
methods of effective leadership. Making good business
plans, managing them well, delegating tasks and protecting
employees from ambiguity is no longer enough in the face of
continual disruption.
All of this requires a new type of leader.
A leader who takes a collaborative and facilitative approach
as opposed to one characterized by command and control. A
leader who operates transparently rather than behind closed
doors. A leader who is culturally agile, not tied to their own
worldview. A leader who is able to fully embrace and leverage
the vast diversity of today’s workforces. A leader who can
create a safe space, regardless of what is happening externally,
where people feel accepted and empowered to give the best
of their talents.
In essence, an inclusive leader.
The 5 Disciplines of Inclusive Leaders 03
The bottom line on inclusivity
In a recent Korn Ferry survey of
talent leaders there was full or
near consensus about the positive
impact of inclusive leadership, with
most respondents strongly agreeing
that inclusive leaders empower
team members to take risks and
bring their authentic selves to work
while also helping organizations to
innovate and capitalize on new
business opportunities.
(Korn Ferry Institute, 2019)
This view is backed up by hard
financial metrics. Take the
McKinsey & Company study of
1,000 companies in 12 countries,
which found that companies in the
top quartile for racial and ethnic
diversity were 33% more likely
to have financial returns above
their respective national industry
medians, while those in the top
quartile for gender diversity were
21% more likely to have financial
returns above their medians.
Conversely, companies in the
bottom quartile both for gender
and for ethnicity and race were
statistically less likely to achieve
above-average returns than average
companies to which they were
compared—showing that they were
lagging, rather than merely not
leading (McKinsey & Company 2018).
Other research points to various
other benefits. Diverse and inclusive
organizations outperform their peers
by being 70 percent more likely
to capture new markets (Diversity
& Inclusion in Corporate Social
Engagement 2018), 75 percent more
likely see ideas become productized
(Center for Talent Innovation 2013),
19 percent SEE higher innovation
revenue (BCG 2018), and 87 percent
more likely to make better decisions
(Korn Ferry Institute, 2018).
The 5 Disciplines of Inclusive Leaders 04
Done well, diversity and inclusion maximises
performance of individuals, teams and organizations
Diverse and inclusive organizations
outperform their peers
Diverse and inclusive teams make better
decisions and better solve complex problems
Higher growth
70% more likely to
capture new markets
70%
Better profitability
Companies with
ethnically diverse
teams are 33% more
likely to outperform
on profitability
33%
Faster time to market
75% more likely to see
ideas become productized
75%
Better innovation
Companies with
above-average diversity
report 19% higher
innovation revenue
19%
Better decisions
Diverse and inclusive teams make
better decisions 87% of the time
87%
Impact on performance
87% of the Most Admired
Companies see positive impact
of diversity and inclusions on
their businesses performance
87%
Before we look in more detail
at the traits, competencies, and
experiences that define inclusive
leadership, let us first consider it in
the context of effective leadership
as a whole.
At Korn Ferry, we assess and
develop leaders globally at a rate
of 100,000 per month, and we
continually engage in analysis, study,
discussion, and debate about the
skills leaders need to succeed. In
recent research, we have focused
on those key qualities that enable
leaders to rise to the challenge of
massive disruption. Why is it that
some leaders can handle change,
ambiguity and unpredictability so
effectively while others fail?
By analyzing the profiles of more
than 150,000 leaders, and surveying
795 investors who fund outwardly
“winning” organizations, we were
able to identify a type of leader who
survives and thrives amidst constant
change by continually disrupting
themselves—their thoughts, their
values, their actions. We call these
people “Self-Disruptive Leaders”
and we believe they will have
an indispensable role to play in
enabling organizations to innovate,
grow, and remain competitive in
the future.
What is significant is the amount
of overlap that exists between
the model for self-disruptive
leadership, on the one hand, and
that of inclusive leadership, on the
other. Through our research, we
identified five key qualities that self-
disruptive leaders possess, which
are the ability to: anticipate, drive,
accelerate, partner, and trust. Many
of the qualities associated with
“partner” and “trust” are shared by
inclusive leaders.
The point is that being an inclusive
leader does not just make you
a good leader of inclusion and
diversity—it makes you a good
leader overall. In fact, 40 percent of
the competencies and traits that define
inclusive leaders are the same as those
that define self-disruptive leaders.
This is perhaps unsurprising. Leaders
who will succeed in the future
are those who are exceptionally
good at partnering with diverse
people across internal and external
ecosystems, and at creating the
trusting, inclusive environments that
are required to unlock the full power
of all the people in the organization.
Inclusiveness is the new currency of
power, influence and effectiveness.
By harnessing it successfully,
leaders will enable their companies
to take the world’s opportunities
by storm.
The 5 Disciplines of Inclusive Leaders 05
Inclusive leadership is not just about diversity and inclusion
Figure 1: The business case
for inclusive leadership.
Inclusive leaders drive
organizational growth
in the 21st century.
Biggest challenge:
create growth.
To have growth you
need to differentiate.
To differentiate you
need to innovate.
To innovate you
need diversity.
To activate the diversity
you need inclusion.
To manage all this you need
inclusive leadership.
The 5 Disciplines of Inclusive Leaders 06
we were able to identify a type of leader who survives and thrives amidst constant change
The 5 Disciplines of Inclusive Leaders 07
Why greater diversity does not automatically lead to better results
A study by the Canadian researcher
N. J. Adler has revealed that while
diverse teams do indeed outperform
and out-innovate homogenous
teams, they can also be significantly
less effective. (See Figure 2)
Why? Because diversity will
only lead to better results if it is
skillfully managed in an inclusive
way. Without inclusion, it has a
high chance of becoming chaotic,
leading to lower productivity and
engagement, higher turnover,
and litigation.
It is, after all, much easier to manage
a group of people with similar
backgrounds and experiences than
it is to convince teams made up of
diverse individuals to understand
their varying thought patterns and
behaviors and value them at a deep
and personal level.
Even when diverse teams are
managed by skilled inclusive leaders,
they may be outperformed by
homogenous teams in the early
stages (See Figure 2) because of
the disruption and conflict that can
result when different perspectives,
experiences, backgrounds,
thinking, and communication
styles are brought into a team.
Given time, however, a
well-managed diverse team
can significantly outperform a
well-managed homogenous one.
The key is having a leader who
is a self-aware advocate for
diversity and has the inclusive
skills to leverage the differences
within the team to achieve
better performance.
Pro
du
cti
vit
y
Time
Diverse teams well managed
Homogenous teams well managed
FORMING NORMINGSTORMING PERFORMING
1The figure synthesizes the work on the performance of diverse versus
homogenous teams by Katherine W. Phillips (October 2014), and Bruce
Tuckman’s framework (1965) for the maturity over time of team performance.
Figure 2: Impact of diversity on team performance
Average Performance
Effectiveness in creative tasks
Multicultural teams
MoreLess
Multicultural teams
Multicultural teams
Reference: Adler, N.J., International Dimensions of Organizational Behavior (4th ed.).Cincinnati, Ohio, South-Western. 2002 | © Milton J. Bennett, 2008
The 5 Disciplines of Inclusive Leaders
What does an inclusive leader look like?
Designing and building the equitable
organizations of the future will
require inclusive leaders at every
level and in every nook and cranny
of the organization. What do those
inclusive leaders look like?
There is plenty of opinion in the
public square about this as well
as many inspiring stories, but we
wanted to start with the science and
engaged our statisticians and I/O
psychologists from the Korn Ferry
Institute to help identify inclusive
leader traits and competencies.
The foundational and confirmational
research was based on a thorough
analysis of Korn Ferry’s database
of over 3 million leadership
assessments from which we mapped
out a clear inclusive leader profile
looking at competencies and traits
that facilitate inclusive leadership.
We then used a variety of
qualitative testing that included
a survey of talent leaders,
in-depth interviews with
inclusive leaders, and focus
groups across the world.
The elements of inclusive
leadership, which we have
empirically and experientially
defined, align with Korn
Ferry’s holistic model of
broad-based leadership that
looks at individual, team and
organizational performance
in an integrated way:
the traits (who someone is),
the competencies (what one
does), and their biography (their
formative and adult experiences).
On the next pages, we examine
these key elements that define
inclusive leadership. We will see
that the inclusive traits alone, as
admirable as they are, cannot
be enough to make inclusive
leadership a reality.
The 5 Disciplines of Inclusive Leaders 04 08
The 5 Disciplines of Inclusive Leaders 09
Traits are generally hardwired. They include an
individual’s personality, sense of purpose, and values.
They also indicate preferences. For inclusive leaders,
they are the inner enablers that make inclusive
leadership possible and, when taken as a whole, they
tell us the leader’s disposition toward differences. The
core enabling trait clusters of an inclusive leader are:
Traits – the inner enablers of inclusive leadership
Authenticity
requires humility, setting aside ego
and establishing trust in the face of
opposing beliefs, values or perspectives.
Emotional Resilience
requires the ability to remain
composed in the face of adversity
and difficulty around differences.
Inquisitiveness
requires openness to differences,
curiosity, and empathy.
Self-assurance
requires a stance of
confidence and optimism.
Flexibility
requires the ability to tolerate ambiguity
and to be adaptable to diverse needs.
Inclusive Leadership Leads to the
Advancement of Women from Ethnic
and Racial Minorities at PepsiCo
PepsiCo sought to address low job
satisfaction rates and high intention-to-
leave rates for women of ethnic and racial
minorities, who also experienced longer
times to promotion and lower trust scores.
In part, this had to do with teams where
there was a disconnect between managers
and the employees. A comprehensive
talent solution was put in place to
boost employee morale and reduce
disproportionate loss among this minority
group. The key component was helping
managers who were mostly white males,
develop greater ability to gain deeper
trust from these employees through better
inclusive listening.
This led to 100% reduction in attrition
among program participants; turnover
was slashed to less than 2% from 42% in
three years. PepsiCo saw a 75% increase
in advancement for women of ethnic and
racial minorities, with their representation
at the senior manager/director/vice
president level rising to 6.8% from 4% in
two years (Korn Ferry 2014). The success
of the solution has also enhanced the
company’s brand, with PepsiCo being
recognized for its leadership in fostering
an inclusive workplace with such corporate
honors as the Advancing Women Award
and the Opportunity Now Excellence in
Practice Award 2015 (PepsiCo, 2015).
The 5 Disciplines of Inclusive Leaders 04
While the traits outlined above are foundational for inclusive leadership,
they are not enough on their own. An inclusive leader must also possess
the skills to lead inclusively. Korn Ferry research has identified the
competencies that are essential for inclusive leadership. We have also
used empirical analysis to organize these competencies into clusters.
We call these The Five Disciplines of the inclusive leader. They are:
Competencies – The five disciplines of inclusive leaders
Builds Interpersonal Trust
is honest and follows through; establishes rapport
by finding common ground while simultaneously
able to value perspectives that differ from own.
Integrates Diverse Perspectives
considers all points of view and needs of
others; skillfully navigates conflict situations.
Applies an Adaptive Mindset
takes a broad worldview; adapts approach to suit
situation; innovates by leveraging differences.
Optimizes Talent
motivates others and supports their growth; joins
forces for collective success across differences.
Achieves Transformation
willing to confront difficult topics;
brings people of all backgrounds
along to achieve results.
The 5 Disciplines of Inclusive Leaders 11
APPLIES AN ADAPTIVE MINDSET
• Situational Adaptability
• Global Perspective
• Cultivates Innovation
OPTIMIZES TALENT
• Drives Engagement
• Develops Talent
• Collaborates
BUILDS INTERPERSONAL TRUST
• Values Differences
• Instills Trust
ACHIEVES TRANSFORMATION
• Courage
• Persuades
• Drives Results
COMPETENCIES
TRAITS
INTEGRATES DIVERSE PERSPECTIVES
• Balances Stakeholders
• Manages Conflict
THE INCLUSIVE LEADER
Flexibility• Tolerance of Ambiguity
• Adaptability
Inquisitiveness• Openness to Differences
• Curiosity
• Empathy
Emotional Resilience• Composure
• Situational Self Awareness
Authenticity• Trust
• Humility
Self-Assurance• Confidence
• Optimism
The Expanding Spheres of Influence of Inclusive Leaders: Self, Team, Organization
Leaders can have expanding spheres of impact that flow from self, team, and
organization. Builds Interpersonal Trust largely involves the spheres of self and team.
Integrates Diverse Perspectives moves more fully into the realm of impact on the
team. Optimizes Talent has major impact on both team and organization but is still
primarily focused on talent. In the last two disciplines of Applies Adaptive Mindset
and Achieves Transformation, the impact becomes heavily focused on organization,
not only on people strategies and experiences but also on other business imperatives
such as innovation, globalization, brand and reputation, and growing markets.
Both traits and competencies can be developed, though given
that they are part of identity and therefore can be inherent
to who we are, traits can be more difficult to grow in.
We have one more vital
element to introduce that
becomes the wrapper around
The Five Disciplines model:
the experiences of each
leader’s biography.
As organizations become
increasingly diverse, there will be
a greater spread of work-style
preferences within any given team.
To excel at inclusive leadership,
individuals therefore need to be able
identify other people’s culturally
driven preferences, as well as their
own, to compare their likes and
dislikes with team members from
different cultures, and to gauge
how helpful and productive their
preferred style is likely to be.
Experiences that expose leaders
to a broad range of geographies,
people, and contexts can increase
their understanding of culturally
driven preferences by challenging
their assumptions and ways of doing
things. Diverse experiences can
also open their eyes to the fact that
client and employee needs are not all
the same and cannot be effectively
addressed the same way across the
board, which in turn helps them
realize that solutions can be varied
and counterintuitive, and that,
sometimes, they are best reached
along unconventional paths.
Personal and professional
experiences that may enhance an
individual’s capacity for inclusive
leadership include:
• Growing up in a different
country or region from the one
they live and work in today.
• Having parents who have done
an overseas stint in business,
not-for-profit, government,
military, or missionary
organizations.
• Experiencing being in the
minority or majority or in a
fully racially or ethnically
mixed environment.
• Studying abroad or
participating in a service
program while in school.
• Undertaking an extended stay
in a different culture, inside or
outside their native country.
• Taking on expatriate work
assignments or on cross-
functional, cross-divisional or
cross-market work assignments
that push them outside their
comfort zone.
If leaders have had these formatively
it gives them an edge in this
journey but it’s not automatic
that they are leveraging these
experiences as much as they could.
Inclusive leaders learn to more
savvily and profoundly leverage
their biographies to lead others
inclusively. And for those who did
not have these early life exposure
to more diverse experiences, it’s
not too late to gain that type of
exposure through short- or long-
term immersion experiences
and even lifestyle changes.
Biography Matters
The 5 Disciplines of Inclusive Leaders 13
In interacting
with the diversity
around them,
inclusive leaders
build interpersonal
trust, take the
views of others
into account, and
are adaptive. These
abilities increase their
effectiveness and the
impact they have on
individuals, teams,
clients, customers,
and communities—
and therefore on
the organization
as a whole.
““
The 5 Disciplines of Inclusive Leaders 14
Moving organizations beyond diversity
metrics to embrace inclusion requires 21st-
century inclusive leadership. By taking on the
challenges inherent in leading heterogeneous
inclusive teams, these leaders bring their
organizations to the next level in a highly
competitive and increasingly diverse global
marketplace. But as this discussion has shown,
inclusive leadership requires commitment
and a strategy. It takes a comprehensive plan,
grounded in the assessment and development
of key leadership traits and competencies, to
foster inclusive leadership at the top of the
organization. This then can in turn inspire
an inclusive mindset shift and capability
development throughout the organization
to attain a more diverse workforce
and realize its full potential.
Conclusion
Authors
Andrés T. Tapia
Senior Client Partner
Diversity & Inclusion
+1.773.372.3782
Alina Polonskaia
Senior Client Partner
Diversity & Inclusion
+1.416.365.4001
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